St George Mining Ltd (ASX:SGQ) is raising $3 million to boost working capital and fund exploration at its existing projects while it advances the acquisition of the Araxá Niobium-Rare Earth Element Project in Minas Gerais, Brazil.
The company has received firm commitments to raise $3 million in a placement to sophisticated and institutional investors at a price of $0.02 per share.
St George Mining executive chair John Prineas said: “We thank investors for their support in this placement which will boost working capital and assist to progress our existing projects.”
The placement, which comprises the issue of 150 million ordinary shares in the capital of St George and 75 million options to acquire ordinary shares, was arranged by the company without engaging a lead manager.
Participants receive one free-attaching option for every two shares subscribed for and issued, with each option having an exercise price of A$0.04 and an expiry date of two years after the date of issue.
The company’s existing projects include:
- The Destiny Project, where drilling is planned to test carbonatite targets and follow-up anomalous zones of gold identified from reconnaissance aircore drilling.
- The Mt Alexander Project, where drilling of gold and lithium targets will follow up lithium and gold targets identified from surface sampling.
- Lithium Star’s seven Western Australian projects including Split Rock, Buningonia and Myuna Rocks.
- The Paterson Project in the Paterson Province, one of Australia’s most highly endowed mineral provinces that hosts the giant Nifty (2 million tonne copper) and Telfer (27 million ounce gold) deposits.
- The Broadview Project in Western Australia’s Wheatbelt, prospective for nickel-copper-PGE deposits, plus copper and gold mineralisation.
- The Ajana Project in the Northampton mineral field, near the western margin of the Yilgarn Craton in WA — an area of renewed exploration interest following the discovery of Chalice Mining’s substantial Julimar deposit.
Araxá acquisition
St George also continues to work towards finalising arrangements for the acquisition of the high-grade Araxá Niobium-REE project in Minas Gerais, Brazil with a further capital raising being planned to support that acquisition.
Prineas added, “We are also excited to be progressing arrangements for the proposed acquisition of the Araxá Project in Brazil.
“We expect to close that acquisition in Q1 2025 with further news on final arrangements expected soon.”